SB376: Bill Text

LRB-3709/2

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2015 - 2016 LEGISLATURE

2015 Senate BILL 376

November 12, 2015 - Introduced by Senators C. Larson, Carpenter, Harris Dodd, Miller, Wirch, Ringhand, Vinehout and Lassa, cosponsored by Representatives Pope, Barnes, Sinicki, Considine, Genrich, Johnson, Kahl, Milroy, Hesselbein, Goyke, Bowen, Hebl, Berceau, Spreitzer, Zamarripa, C. Taylor, Subeck, Kolste, Brostoff, Stuck, Billings and Wachs. Referred to Committee on Education.

SB376,2,2 An Act to repeal 20.255 (2) (aq) and 115.437; to consolidate, renumber and amend 121.15 (1m) (a) (intro.) and 3.; to amend 20.255 (2) (ac), 79.10 (4), 79.10 (5m), 79.14, 79.15, 121.004 (7) (a), 121.07 (6) (d), 121.105 (2) (am) 1., 121.105 (2) (am) 2. (intro.), 121.15 (3m) (a) 2., 121.90 (2) (am) 1., 121.905 (1), 121.905 (3) (c) 6., 121.91 (2m) (i) (intro.), 121.91 (2m) (r) 1. (intro.), 121.91 (2m) (r) 1. b., 121.91 (2m) (s) 1. (intro.), 121.91 (2m) (s) 1. b. and 121.91 (2m) (t) 1. (intro.); and to create 20.255 (2) (bg), 121.004 (7) (g), 121.10, 121.105 (5), 121.136 (3), 121.15 (3m), 121.905 (3) (c) 7., 121.905 (3) (c) 8., 121.91 (2m) (im) and 121.91 (2m) (j) of the statutes; relating to: counting low-income pupils for state school aid purposes; calculating the amount to be appropriated for state general school aid; school aid factors; special adjustment aids; hold harmless aid; per pupil aid; school district revenue limits; the first dollar and school levy property tax credits; and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill makes a number of changes in the laws relating to public school financing, including the following:

1. Currently, the amount appropriated each fiscal year for general school aid is a sum set by law. This bill directs the Department of Public Instruction (DPI), the Department of Administration, and the Legislative Fiscal Bureau annually to jointly certify to the Joint Committee on Finance (JCF) an estimate of the amount necessary to appropriate in the following school year to ensure that state school aids equal the following percentage of partial school revenues (in general, the sum of state school aids and school property taxes):

a. For the 2016-17 school year, 64.5 percent.

b. For the 2017-18 school year, 65.2 percent.

c. For the 2018-19 school year, 65.9 percent.

d. For the 2019-20 school year and each school year thereafter, two-thirds.

Under the bill, JFC determines the amount appropriated as general school aids in each odd-numbered fiscal year (e.g., the 2016-17 fiscal year) and the amount is set by law in each even-numbered fiscal year.

2. For purposes of determining a school district's general school aid amount, in general this bill requires that each pupil who is eligible for a free or reduced-price lunch under the federal school lunch program be counted as an additional 0.3 pupil.

3. Currently, if a school district would receive less in general state aid in any school year than 85 percent of the amount it received in the previous school year, its state aid for the current school year is increased to 85 percent of the aid received in the previous school year. This bill increases the percentage to 90 percent.

4. This bill provides that a school district's state aid in any school year may not be less than an amount equal to the school district's membership multiplied by $3,000.

5. Under current law, beginning in the 2015-16 school year, for purposes of calculating a school district's revenue limit, there is no per pupil adjustment. This bill provides a per pupil adjustment of $275 per pupil for the 2016-17 school year. Under the bill, in the 2017-18 school year and thereafter, the per pupil adjustment is the per pupil adjustment for the previous school year as adjusted for any increase in the consumer price index.

6. Currently, if at least 50 percent of a school district's enrollment is eligible for a free or reduced-price lunch under the federal school lunch program, the school district is eligible for a prorated share of the amount appropriated as high-poverty aid.

This bill eliminates this aid beginning in the 2016-17 school year. The bill provides additional state aid for the 2016-17 school year to hold school districts harmless from the loss of high-poverty aid.

7. Currently, the state annually pays each school district an amount equal to its average enrollment in the current and two preceding school years multiplied by $150 in the 2013-14 school year and $250 in each school year thereafter. This bill eliminates this per pupil aid after the 2015-16 school year.

8. Currently, $75,000,000 in school aid payments is delayed until the following school year. Beginning in the 2017-18 school year, this bill delays $972,400,000 in school aid payments until the following school year.

9. In the school district equalization aid formula, the guaranteed evaluations represent the amount of property tax base support that the state guarantees behind each pupil. There are three guaranteed valuations used; each applies to a different level of expenditures. The first level is for expenditures up to the primary cost ceiling of $1,000 per pupil. The second level is for costs per pupil that exceed $1,000 but are less than the secondary cost ceiling, which is set at 90 percent of the prior school year statewide shared cost per pupil. This bill changes the secondary cost ceiling to 100 percent of the prior school year statewide shared cost per pupil.

10. The bill eliminates the school levy property tax credit and the first dollar property tax credit.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB376,1 Section 1. 20.255 (2) (ac) of the statutes is amended to read:

SB376,3,7 20.255 (2) (ac) General equalization aids. The amounts in the schedule A sum sufficient for the payment of educational aids under ss. 121.08, 121.09, 121.095, 121.105, 121.137 and subch. VI of ch. 121 equal to the amount determined by the joint committee on finance under s. 121.15 (3m) (c) in the 2016-17 fiscal year and biennially thereafter, and equal to the amount determined by law in the 2017-18 fiscal year and biennially thereafter.

SB376,2 Section 2. 20.255 (2) (aq) of the statutes is repealed.

SB376,3 Section 3. 20.255 (2) (bg) of the statutes is created to read:

SB376,3,11 20.255 (2) (bg) Hold harmless aid. A sum sufficient for hold harmless aid to school districts under s. 121.10.

SB376,4 Section 4. 79.10 (4) of the statutes is amended to read:

SB376,4,4 79.10 (4) School levy tax credit. Except as provided in sub. (5m), the amount appropriated under s. 20.835 (3) (b) shall be distributed to municipalities in proportion to their share of the sum of average school tax levies for all municipalities. No municipality shall receive a payment under this subsection after 2017.

SB376,5 Section 5. 79.10 (5m) of the statutes is amended to read:

SB376,4,11 79.10 (5m) First dollar credit. Each municipality shall receive, from the appropriation under s. 20.835 (3) (b), an amount determined by multiplying the school tax rate by the estimated fair market value, not exceeding the value determined under sub. (11) (d), of every parcel of real property with improvements that is located in the municipality. No municipality shall receive a payment under this subsection after 2017.

SB376,6 Section 6. 79.14 of the statutes, as affected by 2015 Wisconsin Act 55, is amended to read:

SB376,4,19 79.14 School levy tax credit. The appropriation under s. 20.835 (3) (b), for the payments under s. 79.10 (4), is $319,305,000 in 1994, 1995, and 1996; $469,305,000 beginning in 1997 and ending in 2006; $593,050,000 in 2007; $672,400,000 in 2008; $747,400,000 in 2009; $732,550,000 in 2010, 2011, and 2012; $747,400,000 in 2013, 2014, and 2015; and $853,000,000 in 2016 and in each year thereafter 2017.

SB376,7 Section 7. 79.15 of the statutes is amended to read:

SB376,4,25 79.15 Improvements credit. The total amount paid each year to municipalities from the appropriation account under s. 20.835 (3) (b) for the payments under s. 79.10 (5m) is $75,000,000 in 2009, $145,000,000 in 2010, and $150,000,000 in 2011, 2012, 2013, 2014, 2015, 2016, and in each year thereafter 2017.

SB376,8 Section 8. 115.437 of the statutes, as affected by 2015 Wisconsin Act 55, is repealed.

SB376,9 Section 9. 121.004 (7) (a) of the statutes is amended to read:

SB376,5,8 121.004 (7) (a) "Pupils enrolled" is the total number of pupils, as expressed by official enrollments, in all schools of the school district, except as provided in pars. (b) to (f) (g). If such total contains a fraction, it shall be expressed as the nearest whole number. The same method shall be used in computing the number of pupils enrolled for resident pupils, nonresident pupils or both.

SB376,10 Section 10. 121.004 (7) (g) of the statutes is created to read:

SB376,5,12 121.004 (7) (g) A pupil who satisfies the income eligibility criteria for a free or reduced-price lunch under 42 USC 1758 (b) (1) shall be counted as the number specified in this subsection for the pupil plus an additional 30 percent of that number.

SB376,11 Section 11. 121.07 (6) (d) of the statutes is amended to read:

SB376,5,17 121.07 (6) (d) The "secondary ceiling cost per member" in the 2001-02 2016-17 school year and in each school year thereafter is an amount determined by dividing the state total shared cost in the previous school year by the state total membership in the previous school year and multiplying the result by 0.90.

SB376,12 Section 12. 121.10 of the statutes is created to read:

SB376,5,20 121.10 Hold harmless aid. (1) In this section, "state aid" means the sum of the following: